Judge: Salvatore Sirna, Case: 23PSCV03763, Date: 2024-05-20 Tentative Ruling

Case Number: 23PSCV03763    Hearing Date: May 20, 2024    Dept: G

Plaintiff Gironi Investments, Inc.’s Application for Default Judgment

Respondent: NO OPPOSITION

TENTATIVE RULING

Plaintiff Gironi Investments, Inc.’s Application for Default Judgment is GRANTED in the reduced amount of $1,500,864.98.

BACKGROUND

This is a breach of contract action arising from an investment agreement. In August 2021, Plaintiff Gironi Investments, Inc. (Gironi) invested $1,500,000.00 in Defendant Octavius Group Holdings, Inc. (Octavius) pursuant to a written agreement in which Gironi was given the right to convert the investment into future stock. Gironi also entered into a separate agreement with Octavius in which Gironi would be given access to the same information as Octavius’s current major investors, notice of future financing, and the right to pro rata participation in future financing. Following Gironi’s investment, a series of events began to cause Gironi concern including a reduction in Octavius’ valuation, the collapse of a merger and investment deal, and the cancellation of a planned stock offering. Gironi alleges Octavius breached their agreements by failing to provide requested information and documents which resulted in the loss of new investment opportunities for Gironi.

On December 5, 2023, Gironi filed a complaint against Octavius alleging the following causes of action: (1) breach of contract, (2) specific performance, and (3) declaratory relief. On December 20, 2023, Gironi’s process server personally served Octavius in Covina.

On January 29, 2024, the Court entered default against Octavius after Octavius failed to file a timely answer. On March 14, 2024, Gironi submitted the present application for default judgment.

A case management conference is set for May 20, 2024.

LEGAL STANDARD

Code of Civil Procedure section 585 permits entry of a default judgment after a party has filed to timely respond or appear.  A party seeking judgment on the default by the court must file a Request for Court Judgment, and: (1) a brief summary of the case; (2) declarations or other admissible evidence in support of the judgment requested; (3) interest computations as necessary; (4) a memorandum of costs and disbursements; (5) a proposed form of judgment; (6) a dismissal of all parties against whom judgment is not sought or an application for separate judgment under CCP § 579, supported by a showing of grounds for each judgment; (7) exhibits as necessary; and (8) a request for attorneys’ fees if allowed by statute or by the agreement of the parties.  (Cal. Rules of Court 3.1800.)

ANALYSIS

Gironi seeks default judgment against Octavius in the total amount of $1,502,691.29, including $1,500,000.00 in damages, $1,826.31 in attorney fees, and $864.98 in costs. Because the Court finds Gironi has submitted sufficient evidence, the Court GRANTS Gironi’s application for default judgment with the following modification. While Gironi requests an award of attorney fees in the present default judgment application, the Court declines to award such fees as they were not requested in the Complaint. (Feminist Women’s Health Center v. Blythe (1995) 32 Cal.App.4th 1641, 1675 [“If plaintiff believed it was entitled by statute to attorney fees, it had to allege that fact in its complaint and demand the fees in the prayer in order to obtain such relief against any defaulting defendants.”].)

CONCLUSION

Based on the foregoing, Gironi’s application for default judgment is GRANTED in the reduced amount of $1,500,864.98.

Gironi to submit a judgment consistent with the ruling above on or before May 23, 2024.